Welcome to John Ransom's Stocks In The News, where the headline meets the trendline.
Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis.
eBay Inc., (SYMBOL: EBAY) and the headline says:
EBay to bolster PayPal business with Braintree acquisition -- Reuters
eBay’s payments company, PayPal, will acquire mobile payment processor Braintree for $800million cash.Braintree will enhance PayPal’s merchant relationships with innovative mobile payments technology, 40 million consumer accounts, and $12 billion in annual payment volume.Braintree will operate as a separate service, and the deal is expected to close this year, resulting in a very small charge against eBay’s 2013 earnings.
Excluding the Braintree acquisition, eBay’s earnings are expected to grow 15-18% per year for each of the next three years.The PE is 21, in a five-year range of 5-27.
eBay shares have been trading between $50 and $58 since last November.For new investors and traders …..
Our Ransom Note trendline says:BUY EBAY BELOW $52.
Stock number two is:
Air Products & Chemicals Inc., (SYMBOL: APD) and the headline says:
Changes Afoot; CEO to Retire as Proxy Fight is Avoided – Citi Research
“This morning [Air Products and Chemicals] announced that current CEO John McGlade will retire in 2014 … effectively avoiding a proxy fight with Pershing Square [Capital Management],” reports Citi Research.Air Products will also add 3 new members to its Board of Directors at the behest of Pershing Square’s Bill Ackman, owner of $2.2 billion in Air Products stock, and famed for his recent spectacular loss on J.C. Penney shares.Pershing Square has agreed in writing to work confidentially with the board toward additional desired changes.
S&P expects earnings to grow 18% this year.The dividend yield is 2.6%, and the ex-dividend date is tomorrow, September 27.